Thinking about rooftop solar in Ontario but unsure if it still pencils out under Southern California Edison’s new billing rules? You are not alone. The rules changed, and so did how savings show up on your bill. In this guide, you will learn what changed, how to judge payback, what buyers value, and what sellers should prepare to keep a sale smooth. Let’s dive in.
SCE’s new rules at a glance
California moved from legacy net energy metering to a Net Billing Tariff for new solar interconnections. Under this structure, exported solar power is no longer credited at the full retail rate. Instead, export credits vary by hour and location based on market values. This matters in Ontario because most homes are in SCE territory, where your savings now depend more on how much solar you use on site than on what you export.
In simple terms, you keep the most value when your home uses solar as it is produced. Credits for power you send to the grid are usually lower than the retail price you pay when you take power from the grid. That shifts the focus to system design, time-of-use rates, and smart operation.
How payback works now
Two value streams under NBT
Your bill savings come from two places:
- Avoided purchases at SCE retail rates when you self-consume solar.
- Export credits for excess solar sent to the grid, which are typically a few cents per kWh and vary by hour and location.
Because export credits are lower than retail rates, a system that matches your daytime use usually performs better than one that exports a lot. Pairing solar with a battery can shift energy into higher-priced evening hours and improve savings.
What most affects your savings
- Household load timing. More daytime consumption increases value. Midday EV charging and pool pumps help you use your own solar.
- Time-of-Use plan. The retail rates you avoid depend on your TOU schedule and when you use power.
- Export compensation. Credits change by hour and location. Hours with low credits make exports less valuable.
- System size and orientation. Oversizing usually means more exports with low credits. A right-sized system limits low-value exports.
- Battery storage. Batteries can shift solar to evening peaks, reduce grid purchases, and add backup capability. Incentives like SGIP may reduce net battery cost.
- Federal tax credit. The federal Investment Tax Credit is currently 30 percent for eligible systems, which lowers upfront cost and shortens payback.
- Financing. Cash, loans, or third-party agreements affect net cash flow and buyer perceptions.
Quick way to model your payback
For a solid estimate, gather:
- Your last 12 months of SCE bills and hourly usage if available.
- A production estimate based on your roof’s tilt, orientation, and shading.
- Your SCE TOU rate and the current export compensation values for your location.
- Installed system cost, expected maintenance, and incentives you can use.
- Financing terms if using a loan.
This input lets an installer or energy professional model hourly savings and give you a clearer payback window.
Is solar still attractive to Ontario buyers?
When solar helps your sale
- Owned systems that are paid off. Buyers like clear savings without transfer hurdles.
- Right-sized systems. Systems designed to serve on-site use feel more valuable under SCE’s rules.
- Solar with batteries. Storage that trims evening bills and can provide backup is a strong selling point. Potential rebates can improve ROI.
- Clean paperwork and transferable warranties. Permits, interconnection, production history, and warranty details build trust.
- Energy-efficient homes. Solar paired with efficient HVAC, insulation, and windows presents a complete value story.
When solar can slow a sale
- Leases or PPAs. Buyers may resist assuming contracts, worry about buyouts, or face lender conditions.
- PACE assessments. These can affect financing and may need to be paid at closing.
- Missing permits or unclear interconnection. Expect inspection issues, insurance questions, or requests for removal.
- Oversized systems that mostly export. Low export credits mean buyers may discount the value of excess generation.
What buyers should confirm
- Ownership status and any liens, leases, PPAs, or PACE obligations.
- At least 12 months of production and SCE billing impact.
- System age, size, inverter and battery details, warranties, and permit history.
- Whether the system meaningfully reduces evening bills, especially if no battery is present.
Seller checklist in Ontario
Assemble this documentation before you list:
- Proof of ownership, paid invoices, or lease/PPA details with buyer options.
- City of Ontario or San Bernardino County permits and final inspection approvals.
- SCE interconnection agreement and recent bills showing production credits or bill impact.
- Production history for at least 12 months if available.
- Panel, inverter, and battery warranties plus transfer steps.
- Any outstanding loan lien, PACE assessment, or other encumbrance with payoff or transfer instructions.
- Battery paperwork if applicable, including SGIP documents and backup capability.
- Installer and manufacturer contacts and service records.
Disclosures and transfer steps
- Disclose leased or PPA systems clearly on standard California forms.
- Notify the buyer and lender of any PACE assessment and confirm payoff requirements.
- Contact SCE early to understand account change and interconnection transfer steps for closing.
- Prepare a one-page solar summary with size, age, average production, on-site use share, estimated annual bill savings, and storage details.
- If leased or PPA, provide assumption, buyout, or removal options with timelines and costs.
Agent tips for your listing
- Present a simple before-and-after bill snapshot with clear assumptions.
- Highlight buyer-friendly features: owned status, battery backup, permits, and warranties.
- Explain that export credits are lower than retail rates and why right-sizing matters. Avoid promises without data.
- For buyers, request 12 months of production and SCE bills to verify impact.
Strategies to protect value under NBT
- Right-size the array to daytime usage. Avoid oversizing that leads to low-value exports.
- Consider a battery when it pencils out. Shifting energy to evening peaks can improve savings and appeal.
- Shift flexible loads to daylight. EV charging, pool pumps, and laundry during sunny hours increase self-consumption.
- Keep records organized. Clean permits, interconnection files, and warranties reduce buyer friction.
- Favor ownership over third-party contracts when possible. Ownership tends to show clearer value to buyers.
Key tradeoffs to consider
Batteries and load shifting add complexity and cost, but they are often the most effective ways to recover value when export credits are low. Incentives such as the 30 percent federal tax credit and potential SGIP battery rebates can improve net returns. Make sure your tax eligibility and any rebate status are confirmed before you rely on them in your math.
The bottom line for Ontario homeowners
Under SCE’s Net Billing Tariff, solar savings lean on self-consumption and smart rate choices. Homes with right-sized systems, clear documentation, and, when justified, battery storage still stand out to buyers. If you plan to sell, prepare your paperwork early and set expectations based on actual bills and production history. If you are buying, verify ownership, review data, and align your usage with the system’s strengths.
If you are weighing solar or planning a sale with an existing system in Ontario or the broader Inland Empire, connect with a broker who can translate these details into a smooth transaction. For clear pricing, local expertise, and senior-level guidance, reach out to Net Gains Real Estate. Ready to talk strategy and value? Contact Unknown Company today to Get Your Free Home Valuation.
FAQs
How do SCE’s new billing rules change solar savings in Ontario?
- Under the Net Billing Tariff, exported energy earns lower, time-based credits than the retail rates you pay, so savings depend more on using solar on site and matching your TOU plan.
Do I need a battery for solar to pay off under SCE?
- Not always, but a battery can shift solar to evening peak hours where avoided retail costs are higher, which often improves savings and can add backup power.
How does the 30 percent federal tax credit work for homeowners?
- Eligible residential solar and storage may qualify for a 30 percent federal Investment Tax Credit, which reduces upfront cost and shortens payback, subject to current IRS rules.
What if the home has a leased solar system or a PPA?
- Buyers may need to assume the contract, negotiate a buyout, or request removal; leases and PPAs can complicate financing and should be disclosed and addressed early.
What paperwork should Ontario sellers provide for a home with solar?
- Provide permits, SCE interconnection, 12 months of production and bills, proof of ownership or lease terms, warranties, and any lien or PACE details with payoff steps.
Does rooftop solar guarantee a higher sale price in SCE territory?
- Owned, well-documented systems can support buyer interest, but premiums vary and depend on actual savings under current export credits and the home’s usage pattern.
How should I charge my EV to get the most from rooftop solar?
- Charge during sunny daytime hours when possible to increase self-consumption and reduce evening grid purchases where rates are often higher.
